Bell v. Arledge

219 F. 675, 135 C.C.A. 347, 1914 U.S. App. LEXIS 1685
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 16, 1914
DocketNo. 2653
StatusPublished
Cited by5 cases

This text of 219 F. 675 (Bell v. Arledge) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bell v. Arledge, 219 F. 675, 135 C.C.A. 347, 1914 U.S. App. LEXIS 1685 (5th Cir. 1914).

Opinion

PARDEE, Circuit Judge.

This is the second appeal in the above entitled cause contesting the claims of Holland & Weisinger, lien-holders upon the estate of the bankrupt. On the first appeal this court, after reciting the facts and evidence, held and decided as follows:

“From the above and foregoing, it is apparent that Holland and Weisinger, in all matters involved in their account herein, whether in selling goods and merchandise, taking up scrip, paying checks, or accepting orders, were acting under their agreement with the Long Leaf Lumber Company, and for payment were relying upon the credit of that company, and that the claim of a lien under assignment from laborers was an afterthought. Certain it is that the evidence does not show any assignment of any laborers’ claim or- lien.
“Under the facts in this case, an assignment (to carry a lien) of scrip or duebills, passing by delivery and payable to bearer on'or before 10 years, cannot well be presumed, and an assignment of laborers’ claims, where neither the laborer nor the specific labor is proved, should not be presumed.
“The statute article 3339d, Texas Civil Statutes, subrogates assignees, but not every person who may come in possession of the claim. See Union Trust Co. v. Southern Sawmill, etc., 166 Fed. 193-202, 92 C. C. A. 101, and cases there cited.
“On the whole case, we conclude that the judgment appealed from should be affirmed', as to appellees Watts and Stone, and reversed as to Holland & Weisinger; costs of this court to be divided, one-half to appellants and one-half to Holland & Weisinger. No docket fees. And it is so ordered.” 192 Fed. 842, 843, 113 C. C. A. 161.

Two years after this .decision and mandate duly entered in the lower court, Holland & Weisinger, assuming that the case was open for further contest as to their claimed lien, and apparently without leave, filed what was entitled “Plaintiffs’ Amended Bill,” generally and in detail setting forth their claims, and concluding with a prayer as follows:

“Premises considered, petitioners pray that upon a hearing hereof they have judgment against the said bankrupt, the Long Leaf Lumber Company, for the amount of their claim, with legal interest thereon from the date thereof, and that the same be declared to be secured by a valid lien upon the assets of the said Long Leaf Lumber Company, formerly in the hands of the referee in bankruptcy in this cause, and that they have judgment against the said W. A. Bell and L. B. Menefee for the amount of said account, interest, and costs of suit.”

Without any answer to the same, so far as the record shows, Holland was again examined as a witness, and on the material issue of assignment vel non he testified as follows:

“Q. In your petition filed in this case about a year ago, after the original claims were filed, the petition contained this allegation: ‘That your petitioner entered into a contract and, agreement with the bankrupt whereby it was arranged between the petitioner and the bankrupt that the management' of said mill should issue cheeks, duebills, and statements of indebtedness due by said Long Leaf Lumber Company to said laborers, and that your petitioner would take up or cash said cheeks, duebills, or orders, and should be reimbursed by the said Long Leaf Lumber Company for the amount so paid.’ That is a true statement, is it not, Mr. Holland? A. Yes, sir. Q. That is the exact situation as it existed at that time between you and the [677]*677company? A. Yes, sir. Q. Yon had no contract with the laborers at all? A. 1 had no contract with the laborers. Q. You had no contract with any of the laborers individually? A. We had a contract to furnish them goods for these checks, but you might say I did not have any special one, it was the laborers in general. Q. Js there any laborer that you had a contract with with reference to furnishing the money on these checks? A. No, sir; we had no contract with individuals. Q. Your contract was wholly between you and the Long Leaf Lumber Company? A. Between Holland & Weisinger and the president and Mr. Stone. Q. Mr. Stone was simply representing the Long Leaf Lumber Company? A. Yes, sir; as manager. Q. Now I will read you a part of the testimony given by Mr. Stone, as shown in the opinion of the Circuit Court of Appeals: ‘The Long Leaf Lumber Company liad an agreement with Holland & Weisinger to cash or pay off all these mill checks, duebills, and orders with the understanding that at stated times the Long Leaf Lumber Company would pay the said Holland & Weisinger the amount due them for such items, and from time to time Holland & Weisinger rendered statements of the amount so due them and surrendered the mill checks, duebills, and orders, and were paid in accordance with said agreement.’ That was a truthful statement of the situation, was it not? A. Yes, sir. Q. Reading further from his testimony as given in the opinion of the court: ‘At the time of the closing of the business of the Long Leaf Lumber Company it was indebted to the said Holland & Weisinger for mill checks, duebills, and orders held by them in the amount of $1,341.59.’ That was correct? A. Yes, sir.”

Re-examined by Mr. Hill:

“We bought these mill checks from the laborers; they were under no obliga lion to deliver them to us any more than to any other person; they could have retained them and had them paid by the Long Leaf Lumber Company, in fact a great number of the laborers did that very thing. In order to get these duebills or mill checks we had to buy it or pay him for it. We bought them in every instance represented in this account, and other people bought them the samo as we did. We bought these duebills or mill checks as a result of an agreement between ourselves and the laborers that held it that we would take it and pay the money or give him goods for it, and he would surrender it to us. They were not orders issued by Holland & Weisinger. The check reads as follows: ‘There is due......dollars for labor.’ In the duebills the names of the laborers were given, but the names were not on the checks. If I got a duebill it would just be, say, for instance, Bill Johnson has $10 worth of time due him by the Long Leaf Lumber Company. The mill cheek is an ordinary check or round piece of paper, and printed on them would be ‘good for 5c,’ or ‘10c,’ or ‘25c,’ as the case may be.
“The duebill is a written statement in substance to the effect: ‘There is due......dollars for labor.’ We had a bunch of these mill checks at the trial before, and they wore offered in evidence. I do not know where they now are. We made the agreement because we could buy the cheeks and buy them in a way that we could afford to pay the Long Leaf Lumber Company; we got the cheeks at a discount. It was .the agreement that on paying them every 30 days we were to give them the discount. There was no agreement with the Long Leaf Lumber Company that we were to look alone to them for payment. The contract between us and Judge Ford, the president of the company, expressly stated that we would have a laborer’s lien to secure these checks, and wo bought the checks and duebills with that understanding and agreement.”

Cross-examined by Mr. Abbott:

“Q. Did you have any agreement with any of these laborers that they would be responsible for the amount due on these checks, provided the Long Leaf Lumber Company did not pay them? A. I had no agreement with them. Q.

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Cite This Page — Counsel Stack

Bluebook (online)
219 F. 675, 135 C.C.A. 347, 1914 U.S. App. LEXIS 1685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bell-v-arledge-ca5-1914.